- Coinbase is launching an NFT marketplace, following in the footsteps of FTX and Binance.
- The Nasdaq-listed firm sees the $10 billion NFT industry as a potential new revenue stream.
- The trading platform would also challenge established rivals such as OpenSea.
Coinbase is preparing to venture into the non-fungible token (NFT) industry and challenge rivals including established marketplaces like OpenSea. The US-based exchange has revealed that its NFT marketplace could launch later this year.
Coinbase ventures into NFT industry
The NFT marketplace has exploded this year, with sales volume recorded over $10 billion in the third quarter, according to DappRadar. These unique tokens represent ownership of items such as art or collectibles. Since they are not fungible, users cannot just exchange an NFT for another unlike cryptocurrencies such as Bitcoin or Ether.
Coinbase stated that an NFT marketplace would enable its 68 million verified users and 8.8 million active users to mint, trade, discover and showcase tokens that are on the Ethereum blockchain. Users can sign up for a waitlist that will allow them early access to the feature.
Vice president of the Nasdaq-listed company Sanchan Saxena said that the offering would allow creators to retain control over their artwork through decentralized contracts and metadata transparency.
Coinbase’s NFT marketplace, also known as Coinbase NFT, would provide features that allow for a creator economy for those who wish to post videos and other content online in exchange for revenue.
Coinbase NFT would allow the cryptocurrency exchange to obtain a new revenue stream, as the firm currently heavily relies on exchange fees. Other digital asset exchanges, including FTX and Binance, have also introduced their own marketplaces, allowing NFTs to be traded.
The leading crypto exchange’s revenue surpassed $2.2 billion compared to estimates of $1.78 billion in Q2 this year. The firm posted a net profit of $1.6 billion in Q2, a phenomenal increase of 4,900% compared to the same period last year, which recorded $32 million.
OpenSea, one of the most established NFT marketplaces, has faced scrutiny for using burner wallets to purchase tokens to boost attention for the artwork on the platform’s front page. The firm also admitted to insider trading but is still by far the biggest NFT marketplace, recording $8.7 billion in total transaction volume, according to DappRadar.